Cross-promotion is also known as barter marketing, co-operative marketing, joint venture marketing, marketing cooperation, cross-marketing or co-branding.

Cross-promotion is possible when two parties:

• who target identical or similar niche markets
• who are not directly competing
• decide they're both better off promoting each other

Three advantages of cross promotion:

• It’s credible marketing as you’re referred by somebody else
• It helps to reduce marketing costs as most deals are barter deals
• It allows to target very specific niche markers in new direct ways

One of the most common cross-promotion practices consist of link exchanges or banner exchanges. However, there are many more ways to cross-promote succesfully.

• Internet marketing example:

  Two websites both target the market of young, English speaking fashion addicts. Website 1 however specialises in discussing footwear & shoes. Website 2 specialises in discussing watches. Both websites are better off when they both advertise the other website in a banner or an editorial. This is cross promotion.

• Internet & wireless marketing example:

  A wireless application start-up & a job portal for IT people make a deal. Everybody who updates his CV on the job portal may use the new wireless application for a month free of charge. Once again, both parties are better off.

  The wireless company gets free access to new IT savvy customers. The IT Job portal can offer it’s members something no other job portal does. Cross-promotion, again.

• Retail marketing example:

  Companies A and B both target the latino market for car owners in Florida.

  Company A sells car insurance policies through their website.
  Company B sells tuning accessoires through a chain of partner garages.

  Both can meet up on IntroNiche and decide to do cross-promotion
  .

  Company A will send it's database a newsletter with a special promotion on the tuning accessoires of company B.
  Company B will ensure there will be posters, leaflets and stickers promoting car insurance A in it's partner's garages. Indeed, cross-promotion!

You can cross-promote as well. Register now & place a free ad

For more details on cross-promotion, please check this Wikipedia definition.